| PFI Conversation: “It’s a win, win, win.” |
 StonehamBank, a member of the FHLB Boston, is a community bank with branches in Stoneham, Mass., population 21,000 and Billerica, Mass., a community of 39,000. It was chartered in 1886 as a co-operative bank, with home mortgage lending as its primary core value.
At present, StonehamBank has $440 million in assets and is driven by approximately 80 employees serving both customers and the community. MPF® In Focus recently spoke with Shane Bellavance (right), Senior Vice President–Residential Lending. Shane has worked at StonehamBank for 17 years and oversees the residential lending, servicing, and secondary marketing areas. He said that approximately $1 in every $10 the bank earns is given back to the community in some way.
Last year StonehamBank originated $176 million in residential mortgage loans. Approximately $123 million were sold through correspondent relationships; $75 million of these were sold under the MPF Program in which the bank kept the servicing.
What were the circumstances that led you to begin using the MPF Program?
Shane: We were an early adopter—we’ve been involved for more than 10 years. The MPF Program was introduced to us by our Federal Home Loan Bank account representative. We are always seeking and exploring new opportunities and aren’t afraid to consider something new. This is truly a partnership that provides multiple benefits, such as liquidity and the ability to retain servicing.
What are some of the benefits you've realized?
Shane: The beauty of the MPF traditional product is that the risk and exposure are measurable and quantifiable, we maintain the service relationship, and we benefit from earning increased revenue from limited participation in the risk. In addition, pricing is very attractive and the MPF Program is easy to deal with. It’s a win, win, win.
Customers don’t “see” the MPF Program; what they do see is a local bank that services their account. We still have people answering the phone. Our customers love this bank. We have one customer, a local police officer, who has referred something like 32 customers to our bank.
How would you rate your experience with the MPF Program?
Shane: There is a learning curve at first, but it runs like clockwork now. It is easily one of our preferred relationships. Bill Dolan and Paul Pouliot of FHLB-Boston have been great assets to us and have always been available when we’ve needed them. And the MPF Help Desk has been especially good to work with. It is one thing to promise good service, another to deliver it—and they do.
 What do you feel are the best benefits?
Shane: The MPF Program is one of the best kept secrets in mortgage banking. I think the resources of small banks are stretched. You need to apply them effectively and efficiently. If you don’t explore the MPF Program, you are likely missing a valuable opportunity. Once in the MPF Program, no one gets out and there’s a reason for that. In addition, the service is excellent.
Anyone considering the MPF Program should make a commitment to explore it and understand it with your account representative. |
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